Options Playbook Radio

We are back in the saddle discussing options strategies. With the VIX in the low- to mid-teens, that makes for an interesting time to look at volatility. We are going to look at a long call spread, possibly with a roll. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • Indexes and volatility
  • Looking to do this trade for positive theta
  • Selecting expriations
  • What's a time bomb butterfly?
  • Setting up the trade
  • Selecting strikes
  • What do we want to happen?
  • What is the max risk? Reward?
  • To adjust or not to adjust?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio209B.mp3
Category:general -- posted at: 12:06pm CDT

Mark and Brian are on location at the Options Industry Conference, the annual event that brings everyone in the options industry together. They discuss:

  • Are covered calls really the best strategy for novice options traders?
  • Is there a good rule of thumb on when to use a ratio spread?
  • Should trading be concentrated in the last 30 minutes of the day to take advantage of liquidity?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio209.mp3
Category:general -- posted at: 12:47pm CDT

Mark and Brian are on location at the Options Industry Conference, the annual event that brings everyone in the options industry together. They discuss:

Specifically:

  • Launching new products to meet retail investor needs
  • Liquidity concerns
  • Exchanges fragmenting liquidity through extra strikes and expirations
  • What about price improvement?
  • Unlimited quoting
  • What did they learn at this year's event?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio207.mp3
Category:financial podcast -- posted at: 1:42pm CDT

We are in the tech portion of earnings season, so let's take a look at Facebook. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • Where is FB trading right now?
  • What is the situation with FB?
  • Can we sell the put spread for enough of a credit to buy a call?
  • Setting up the put spread
  • Selecting strikes
  • Looking to buy a call from the proceeds
  • Selecting the strike
  • What do we want to happen?
  • What is the risk? Reward?
  • How you can double up to catch up
  • Some rationale on time frame

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio206.mp3
Category:general -- posted at: 2:42pm CDT

Welcome to Options Playbook Radio

On this episode we discuss:

  • A review of our earnings trade in NFLX
  • A complete breakdown of our new earnings skip-strike butterfly in GOOGL.
Direct download: Options_Playbook_205_final.mp3
Category:financial podcast -- posted at: 6:18pm CDT

In this episode, Brian looks at a NFLX butterfly before earnings, including:

  • Selecting strikes & expiration
  • Watch out for skew
  • Plan the trade, trade the plan
  • And more...
Direct download: OptionsPlaybookRadio204.mp3
Category:general -- posted at: 1:04pm CDT

We are back in the saddle discussing options strategies. As we are a few days away from earnings, let's look at something that is not driven by earnings. While we're waiting for volatility to slow down, let's look at a short-term butterfly in UNH. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • UNH announces earnings on 4/16
  • Doing a very short-term butterfly to not contain earnings
  • What are we hoping to happen?
  • What is the implied volatility?
  • Selecting strikes
  • Setting up the trade
  • What is the maximum risk? Reward?
  • What about time decay?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio203.mp3
Category:general -- posted at: 2:45pm CDT

It's time to huddle up, in which Brian and Mark address listener questions and comments.

In this episode:

  • Question from Ed Bankert: Debating on using covered calls or short puts. Which is better for a less experienced options trader who wants to make money?
  • Question from Duffy: How do you handle the fixed-time aspect of trading options?
  • Comment from Charlie T.: Not really an options guy. I don't need the headache of yet another unknown element aka time. It’s hard enough just picking my stocks, deciding price points, exit points, etc.

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio202.mp3
Category:general -- posted at: 1:18pm CDT

As we approach the end of earnings season, there are still a few names left to announce. Last week we talked about a FedEx butterfly. Let's revisit what has happened since. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • A review of last week's FDX butterfly
  • What has happened to FDX since the paper trade?
  • What is happening in Nike?
  • How about a back spread?
  • Looking for volatility
  • Hoping the stock will move more than the expected move
  • Selecting expiration
  • Selecting strikes
  • What is the maximum gain? Loss?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio201.mp3
Category:general -- posted at: 12:45pm CDT

Last week we talked about a Costco butterfly. Let's revisit what has happened since. You can find more on page 102 (butterfly) and page 126 (iron condor) of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week's comparison of the butterfly vs. iron condor in COST
  • Breaking down the butterfly
  • What about the iron condor?
  • What happened after COST announced earnings?
  • Implied volatility and time decay as factors
  • Moving on to FedEx, which reports earnings on 3/20
  • How to set up a trade to contain the earnings
  • Selecting strikes
  • What is the cost?
  • What is the maximum risk?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio200.mp3
Category:general -- posted at: 9:23am CDT